Defense corruption in Russia

October 15, 2008 by Dagpotter · Comment
Filed under: Contract Awards, IT, Russia, crime, development program 

The Russian Ministry of Defense announced that contract fraud was perpetuated on the Russian government through manipulation of contract evaluation and awards. The Ministry had contracted with the state owned 26th Central Scientific Research Institute to manage a security software system. The Research Institute awarded the contract to a company that turned out to be made up of people on the contract evaluation board. Up to 20 M rubles may be involved in this case where little or no work was done and the money was moved around via false contracts. In the US when a Source Selection Evaluation Board (SSEB) is established all the members are investigated for such conflicts, although there have been cases of outright bribery of members for a favorable contract award.

For more see Komersant’s website.

Britain signs CV contract

The British Ministry of Defense signed the contract with the VT Group to build the two new aircraft carriers for the Royal Navy. See an article here. Previous reports had the Scottish government worried that Britain might renege on the deal due to differences with the emerging nationalistic mood in Scotland. See a post here. The total contract value is about $7.5 B with as always with these kind of programs the chance to go higher.